Pepsi has found that consumers will purchase ten cases of Pepsi One at $5.00 a case, twelve cases at $4.00 a case, and fifteen cases at $2.50 a case. The next logical step for Pepsi is to generate a(n)_______based on this data.
A)demand curve
B)price constraints
C)marginal revenue curve
D)break-even point

Question

Quizplus · Accepted Answer

Pepsi can use this data to create a demand curve, which shows the relationship between the price of Pepsi One and the quantity of cases consumers are willing to buy at each price point. This information can be used to determine the optimal price for Pepsi One that will maximize revenue and profit.

Pepsi Has Found That Consumers Will Purchase Ten Cases of Pepsi